How to Use Roth IRA to Buy Real Estate

USE ROTH IRA TO BUY REAL ESTATE

Find out how to use Roth IRA to buy real estate. If you have a Roth IRA, then you have great opportunities waiting for you in the real estate industry!

At this point, you are a serious investor, and you’re ready for some big money deals.  

So let’s talk about how to use Roth IRA to buy real estate.  You won’t be disappointed when you see how this works and learn to put small investments to work in a Roth IRA to make big money.  

I’m Ted Thomas. I’ve been involved in real estate since 1970, but I’m primarily involved in the business of tax lien certificates and tax deeds, including teaching, guiding people and showing them how to make money.

I have a free gift for you. It’s just a short online course, so you can start right away to learn more about tax liens and deeds. I encourage you to take advantage of it.

USE ROTH IRA TO BUY REAL ESTATE AND GROW YOUR PORTFOLIO

Decades in the real estate business taught me a lot of lessons.

In the last 30 years, I’ve watched the little guy start with small tax lien certificates and grow portfolios to large dollars that are protected tax deferred until they start withdrawing. 

I have also seen serious money generated with tax defaulted property, also called tax deeds

I’ve watched Roth IRA investments with only $5,000 grow to $100,000, not taxable. 

My point is this is a perfect way for the little guy to grow their portfolio.  You’re going to learn that, and I’m going to focus on tax deed properties and why they create such incredible returns.

USE ROTH IRA TO BUY REAL ESTATE AT TAX DEED AUCTIONS

The best bargains for newcomers in real estate are found at tax defaulted property auctions.

Why? Because the local government is going to sell property for 10 cents, 20 cents, 30 cents on the dollar, starting bid. So, that’s the place to start, especially when there’s no mortgage.

USE ROTH IRA TO BUY REAL ESTATE – TAX DEFAULTED PROPERTY

Now, what is a tax defaulted property? The property is unwanted, and the previous owner may have abandoned or didn’t care enough to pay the property taxes.  Not paying taxes has consequences.

The state and the county must collect property taxes in order to fund local police, firefighters and school teachers. All of this takes money including the payment of county employees. 

Nonpayment of taxes will trigger a notice from the county treasurer to the property owner.

The treasurer is authorized to levy taxes, collect taxes. If the taxes are not paid, the treasurer will confiscate and sell the property at a public auction and use the money to pay the delinquent taxes. 

The treasurer’s responsibility is to generate the money for the county’s bills, including trash pickup, paying for the legal system and court system, and paying public employees. 

If the treasurer is unable to collect, he or she will seize and sell the property at a public auction.

SAVVY INVESTORS USE ROTH IRA TO BUY REAL ESTATE

tax deed investingToday we’re talking about how to use Roth IRA to buy real estate.

Savvy investors, the people who make the big money, start with a Roth IRA, and they understand the bargain aspects of buying at a tax defaulted property auction. 

The Roth IRA account will allow you to pay a small tax when you buy the investment. From that period on, all the growth within that investment is going to be tax deferred. No tax will even be payable, so it’s even more than deferred.

It’s actually a tax deduction. You won’t have to pay anything on all of that growth. So, if you purchased a property for 20 cents on the dollar, and you sold it for a 100 cents on the dollar, that won’t be taxable. 

AN EXAMPLE OF HOW TO USE ROTH IRA TO BUY REAL ESTATE

Let me tell you about a recent client to give you a good example of this.

The client invested $4,000 in a Roth IRA and purchased an abandoned home. The home was livable, completely furnished, one car in the garage, one speed boat in the garage, a swimming pool that was green.

The tax assessed value, which turned out to be low, was $55,000. Again, the purchase price was slightly less than $4,000, certainly less than 10 cents on the dollar.

The Roth IRA was used to purchase the property. The Roth IRA was used to further invest another $7,000 to clean up the yard, tidy up the property and prepare it for sale. 

Well, there was a waiting buyer, and the buyer wanted installment payments. That’s another signal that says that they want you to finance the property.

The client sold the property on installments of $1,000 a month for 7 years.  That calculates out to be $84,000, and he paid a total of $11,000 for that property. That’s a $73,000 profit, and all of this tax-free for life in an IRA. 

This is not an unusual story.

USE ROTH IRA TO BUY REAL ESTATE FOR TAX SAVINGS

So, think about that as an investment. That’s a powerful investment for anybody. If you made $75,000 at your job, are you going to have to pay taxes? Yes, 25%, 30%, even 50% tax for some people, but within an IRA, it’s non-taxable.

  • Investments in traditional IRAs are tax-deferred until withdrawn.
  • For Investments in Roth IRAs, the tax is paid initially, and all future profits for life are tax free.

Am I an expert on IRAs? No, but I am an expert on making money with tax lien certificates and tax defaulted property.

With this investment, whether it’s a traditional investment or a tax deferred one like in the Roth IRA, either way you’re going to make money.

I’m not here to sell you the IRA. I’m selling you on the concept, but I’m not an insurance man, banker, or broker, just someone like you who buys and sells, and I made my business by doing this in the trenches.

This is a good way for you to start making yourself some money.

Learn how to earn lucrative profits in real estate. You can get started today at no cost by taking advantage of my FREE Master Class.

TAKEAWAY

We hope you enjoyed Ted’s lesson, “How to Use Roth IRA to Buy Real Estate.”

A Roth IRA combined with tax defaulted property investing is a powerful way to create massive wealth.

At tax defaulted property auctions, you can pick up real estate at bargain basement prices. Then if you use Roth IRA to buy real estate at those auctions, you can save big on taxes.

Why? Because for investments in Roth IRAs, the tax is paid initially, and all future profits for life are tax free.

That’s why the Roth IRA works so powerfully with deep discount real estate investing when the property is purchased for pennies on the dollar, so you can really increase you wealth when you use Roth IRA to buy real estate.

If you’d like to know more, Ted Thomas can teach you. For over 25 years, Ted’s been showing students how to do this successfully.

Ted Thomas offers full support and a complete training with home study courses, Q&A sessions, live tutorials, workshops & web classes, and personal coaching.

Ted Thomas classLearn the secrets of making money in real estate previously only known to the one-percenters with Ted’s FREE Master Class. It costs you nothing and only takes about an hour of your time. Change your life today. Why wait?


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Podcast-Ted-Thomas

Ted Thomas

Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.

The Ted Thomas Difference:

  • Ted is recognized as America’s Tax Lien Certificate & Tax Deed Authority and has been helping people with investing in tax defaulted properties for over 30 years.
  • Ted has built a team of certified coaches that have 70 combined years of auction experience and are available to his students by phone to guide and mentor you to avoid getting overwhelmed or worse, losing money
  • Ted has ironclad PROOF that what he is teaching you does work. With hundreds of successful students providing testimonials and a 4.9 Google rating which is unheard of in this industry.
  • Ted and his staff don’t hide behind a website; they can be reached during office hours at 321-449-9940.
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